A stock was priced at $150 per share at the end of 1999. The following table shows dividends per share paid during each year and the price of the stock at the end of the year for the following four years: year divedends paid during year stock price at end of year

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
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A stock was priced at $150 per share at the end of
1999. The following table shows dividends per
share paid during each year and the price of the
stock at the end of the year for the following four
years:
year divedends paid during year stock price at end
of year
2000 $3.00 $125
2001 $3.00 $150
2002 $3.50 $155
2003 $4.00$200
For each year from 2000 to 2003, calculate the
dividend yield, the capital-gains yield, and the total
return to the stock. Express your calculations in
percentage terms
Transcribed Image Text:A stock was priced at $150 per share at the end of 1999. The following table shows dividends per share paid during each year and the price of the stock at the end of the year for the following four years: year divedends paid during year stock price at end of year 2000 $3.00 $125 2001 $3.00 $150 2002 $3.50 $155 2003 $4.00$200 For each year from 2000 to 2003, calculate the dividend yield, the capital-gains yield, and the total return to the stock. Express your calculations in percentage terms
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